Please complete the table above and the following questions: 1. The total cost o

Question

Please complete the table above and the following questions:

1. The total cost of hirings is computed as? follows:

Total hiring cost? = Total units hired ×Cost of hiring additional workers per unit.

The total hiring cost?=?$

?

2. The total cost of layoffs is computed as? follows:

Total layoff cost? = Total units laid off × Cost of laying off workers per unit.

The total layoff cost? =?$

? 3. Total inventory carrying cost? = Total ending inventory units ×Inventory holding cost per unit.

The total inventory carrying cost? =?$

4. ?Total stockout cost? = Total units short ×Lost sales cost per unit.

The total stockout cost? =?$

5. The total? cost, excluding normal time labor? costs, for Plan B? =?$

Explanation / Answer

The table as per Plan B is as below

1. The total cost of hirings is computed as follows:

Total hiring cost = Total units hired ×Cost of hiring additional workers per unit.

The total hiring cost=$35*800 = $ 28000

2. The total cost of layoffs is computed as follows:

Total layoff cost = Total units laid off × Cost of laying off workers per unit.

The total layoff cost =$60*300 = $ 18000

3. Total inventory carrying cost = Total ending inventory units ×Inventory holding cost per unit.

The total inventory carrying cost =$20*400 = $ 8000

4. Total stockout cost = Total units short ×Lost sales cost per unit.

The total stockout cost =$100*500 = $ 50000

5. The total cost, excluding normal time labor costs, for Plan B =$ 28000+18000+8000+50000 = $ 104000

Sum of total costs as calculated in 1,2,3,4

Month Demand Production Hire (units) Layoff (units) Ending Inventory Stockouts (units) July 1000 1300 0 0 300 0 August 1200 1000 0 300 100 0 September 1400 1200 200 0 0 100 October 1800 1400 200 0 0 400 November 1800 1800 400 0 0 0 December 1800 1800 0 0 0 0 Total 9000 8500 800 300 400 500

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